{
  "title": "Mortgage Defaults",
  "publication": "IMF Working Papers, January 1, 2012",
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  "summary": "This paper incorporates house price risk and mortgages into a standard incomplete market (SIM) model. The model is calibrated to match U.S.",
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      "heading": "Overview",
      "content": "- The paper incorporates house price risk and mortgages into a standard incomplete market (SIM) model.\n- The model is calibrated to match U.S. data and accounts for non-targeted features such as:\n  - the distribution of down payments,\n  - the life-cycle profile of home ownership,\n  - the mortgage default rate."
    },
    {
      "heading": "Key findings",
      "content": "- The average coefficients that measure agents' ability to self-insure against income shocks are similar to those of a SIM model without housing.\n- Housing increases the values of these insurance coefficients for younger agents.\n- The response of consumption to house price shocks is minimal.\n- The introduction of minimum down payments or income garnishment benefits a majority of the population."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Minimum down payment requirements can improve outcomes for a majority of agents.\n- Income garnishment mechanisms can benefit a majority of the population.\n  (The paper evaluates these policies within the calibrated SIM model with housing and mortgage default.)"
    },
    {
      "heading": "Subject and keywords",
      "content": "- Subject: Consumption, Financial institutions, Housing, Housing prices, Income, Mortgages, National accounts, Prices\n- Keywords: Consumption, default, default decision, default rate, down payment, garnishment, home equity, house price shock, Housing, Housing prices, Income, insurance coefficient, life cycle, mortgage, Mortgages, payment obligation, price level, WP\n\n---\n\n Content in this bundle\n\n- wp1226\n  - wp1226 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp1226 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/mortgage-defaults-25670"
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    "Authors: Leonardo Martinez, Juan Carlos Hatchondo, Juan M. Sanchez",
    "Published: January 1, 2012",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781463932534.001",
    "The paper incorporates house price risk and mortgages into a standard incomplete market (SIM) model.",
    "The model is calibrated to match U.S. data and accounts for non-targeted features such as:",
    "The average coefficients that measure agents' ability to self-insure against income shocks are similar to those of a SIM model without housing.",
    "Housing increases the values of these insurance coefficients for younger agents.",
    "The response of consumption to house price shocks is minimal.",
    "The introduction of minimum down payments or income garnishment benefits a majority of the population.",
    "Minimum down payment requirements can improve outcomes for a majority of agents.",
    "Income garnishment mechanisms can benefit a majority of the population.",
    "Subject: Consumption, Financial institutions, Housing, Housing prices, Income, Mortgages, National accounts, Prices",
    "Keywords: Consumption, default, default decision, default rate, down payment, garnishment, home equity, house price shock, Housing, Housing prices, Income, insurance coefficient, life cycle, mortgage, Mortgages, payment obligation, price level, WP",
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